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I’ve been seeing some feedback about worker retention being a “horrible HR metric”. IMHO, worker retention isn’t an HR metric in any respect. It’s a enterprise metric.
HR doesn’t have absolute management over the important thing drivers to worker retention: organizational tradition and the worker worth proposition (EVP). Sure, HR performs a task in creating and sustaining tradition and the EVP. However there are different division leaders who play vital roles as effectively.
And HR is often liable for calculating the retention quantity. Simply since you calculate the quantity doesn’t imply you personal all of the elements that go into it. And holding HR accountable for a quantity they don’t management … effectively, that simply doesn’t make good enterprise sense.
However let’s for a second put the dialog about who owns the metric apart and simply talk about worker retention. The metric measures the group’s potential to retain staff. Lets say the other of retention is turnover. A excessive turnover quantity would point out that the group struggles to maintain staff.
Division managers have the first accountability for his or her groups. After they handle their groups effectively, and staff keep, the supervisor usually will get credit score. And when managers expertise plenty of turnover, the group wants to grasp why. This isn’t a state of affairs the place when turnover is low the supervisor will get credit score and when it’s excessive, it’s HR’s fault.
HR does wish to perceive the explanations that staff stick with the group. Organizations can uncover this throughout keep interviews. This data might be precious when the corporate is making selections about tradition and the EVP. As an example, let’s say the corporate is contemplating a change in well being care protection. Workers say that well being care is among the prime causes they stick with the corporate. Administration will wish to know that as they’re making well being care selections.
Additionally, the organizations can use the explanations staff stick with the corporate of their recruiting technique. The recruiting group will wish to promote these advantages of their recruitment advertising and marketing campaigns.
Lastly, and this level is kinda associated to why staff stick with the corporate, organizations ought to wish to know why staff go away in addition to why they begin searching for new alternatives. There’s a distinction. Firms can ask these questions throughout exit interviews. An worker may resign and say they’re leaving for a corporation that pays extra, has higher advantages, and permits hybrid work. All which may be true.
Nevertheless, the explanation they began trying within the first place? Nicely, their supervisor is thoughtless blockhead. Understanding why staff begin trying within the first place can present insights to assist enhance worker retention.
Which brings us again to the unique remark about worker retention. Retention isn’t essentially a horrible metric … so long as it’s used as a place to begin to deeper questions AND within the correct context.
Picture captured by Sharlyn Lauby after talking on the Flora Icelandic HR Administration Convention in Reykjavik, Iceland
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